20-9-2023_221946_education.wiley. SUBMIT Answer Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes. (b) Your answer is partially correct. What would be the effect on income if product A were dropped? Net income would decrease ~ by s 19000 eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer (c) * Your answer is incorrect. Management is considering making a new product using product A's equipment. If the new product's selling price per unit were $10, its variable costs were $5, and its advertising costs were the same as for product A, how many units of the new product would the company have to sell to make the switch from product A to the new product worthwhile? Units 106600 Q Search LILOVeb capture_20-9-2023_221946_education.wiley.com.jpeg 100% Show Attempt History Current Attempt in Progress Sandhill Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: A B C Total Sales $2,221,000 $1,402,000 $1,819.600 $5.442,600 Variable expenses 1,668,000 601,300 1,083,800 3,353.100 Contribution margin $553,000 $800,700 $735.800 $2,089.500 Advertising expense $514,000 $427.000 $522,000 $1.463.000 Depreciation expense 15,300 10.600 20,100 46.000 Corporate expenses 94,700 84,400 105.900 285.000 Total fixed expenses $624,000 $522,000 $648,000 $1,794,000 Operating income $(71,000) $278,700 $87,800 $295,500 Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. (a) fear Q Search LILONCE fture_20-9-2023_221946_education.wiley.com.jpeg 84% (a) Your answer is partially correct. Restate the income statement in segment margin format. A B C Total 2.221,000 1 402,000 1,819,600 5.442,600 xperses 1,668,000 601.300 1,083,800 3,353,100 on margin 553,000 800,700 735,800 2.089,500 Direct fixed expenses 514,000 4:27.900 522.000 1,463,000 ition 15,300 10.600 20.100 46,000 margin $ 3,700 363,100 193,700 560.500 Common fixed expenses 285,000 profit $273.500 eTextbook and Media Save for Later Last saved 1 second ago. Attempts: 1 of 3 used Submit Answer Saved.work will be auto submitted on the due date Auto submission.can take.un. Q Search HILO W f